{"id":1283213,"date":"2023-10-07T06:00:49","date_gmt":"2023-10-07T05:00:49","guid":{"rendered":"https:\/\/www.businesstelegraph.co.uk\/does-your-energy-deal-have-an-exit-fee-some-new-fixed-tariffs-come-with-penalties-of-up-to-300\/"},"modified":"2023-10-07T06:00:49","modified_gmt":"2023-10-07T05:00:49","slug":"does-your-energy-deal-have-an-exit-fee-some-new-fixed-tariffs-come-with-penalties-of-up-to-300","status":"publish","type":"post","link":"https:\/\/www.businesstelegraph.co.uk\/does-your-energy-deal-have-an-exit-fee-some-new-fixed-tariffs-come-with-penalties-of-up-to-300\/","title":{"rendered":"Does YOUR energy deal have an exit fee? Some new fixed tariffs come with penalties of up to \u00a3300"},"content":{"rendered":"<p> <script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- newscabal uk text -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"3688094655\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"js-article-text\" wp_automatic_readability=\"95.583321474313\">\n<h2>Does YOUR energy deal have an exit fee? Some new fixed tariffs come with penalties of up to \u00a3300<\/h2>\n<ul class=\"mol-bullets-with-font\">\n<li class=\"class\"><strong>Fees to leave fixed rate energy tariffs can reach hundreds of pounds<\/strong><\/li>\n<li class=\"class\"><strong>But many of these deals are uncompetitive, leaving consumers stranded\u00a0<\/strong><\/li>\n<\/ul>\n<p class=\"author-section byline-plain\">By <a href=\"https:\/\/www.dailymail.co.uk\/home\/search.html?s=&amp;authornamef=Sam+Barker\" class=\"author\">Sam Barker<\/a> <\/p>\n<p class=\"byline-section\"><span class=\"article-timestamp article-timestamp-updated\"> <span class=\"article-timestamp-label\">Updated:<\/span> <time datetime=\"2023-10-07T06:00:49+0100\"> 06:00 BST, 7 October 2023 <\/time> <\/span> <\/p>\n<p> <!-- ad: https:\/\/mads.dailymail.co.uk\/v8\/dk\/money\/moneybills\/article\/other\/para_top.html --> <!-- CWV --><!--[if !IE]><!--> <link href=\"https:\/\/scripts.dailymail.co.uk\/static\/mol-fe\/static\/mol-fe-async-bundle\/7.2.5\/articleDefer.css\" media=\"all\" rel=\"stylesheet\" type=\"text\/css\" \/> <!--<![endif]--> <!--[if IE]>\n<link href=\"https:\/\/scripts.dailymail.co.uk\/static\/gunther\/1.17.0\/registration--.css\" media=\"screen\" rel=\"stylesheet\" type=\"text\/css\" \/>\n<![endif]--> <!--[if !IE]><!--> <link href=\"https:\/\/scripts.dailymail.co.uk\/static\/gunther\/17.18.0\/registration--.css\" media=\"all\" rel=\"stylesheet\" type=\"text\/css\" \/> <!--<![endif]--><!--[if IE]>\n<link href=\"https:\/\/scripts.dailymail.co.uk\/static\/gunther\/1.17.0\/all-ie8-9--.css\" media=\"all\" rel=\"stylesheet\" type=\"text\/css\" \/>\n<link href=\"https:\/\/scripts.dailymail.co.uk\/static\/gunther\/1.17.0\/all1-ie8-9--.css\" media=\"all\" rel=\"stylesheet\" type=\"text\/css\" \/>\n<![endif]--> <!--[if !IE]><!--> <link href=\"https:\/\/scripts.dailymail.co.uk\/static\/mol-fe\/static\/mol-fe-sync-bundle\/9.6.10\/desktop.css\" media=\"all\" rel=\"stylesheet\" type=\"text\/css\" \/> <link href=\"https:\/\/scripts.dailymail.co.uk\/static\/gunther\/17.18.1\/all--.css\" media=\"all\" rel=\"stylesheet\" type=\"text\/css\" \/><link href=\"https:\/\/scripts.dailymail.co.uk\/static\/gunther\/17.18.1\/all1--.css\" media=\"all\" rel=\"stylesheet\" type=\"text\/css\" \/> <!--<![endif]--><!--[if gte IE 8]><!--> <link rel=\"stylesheet\" type=\"text\/css\" media=\"screen\" href=\"https:\/\/scripts.dailymail.co.uk\/static\/mol-fe\/static\/mol-fe-fff\/2.4.1\/styles\/fff.css\" \/> <!--<![endif]-->  <!--[if IE 8]>\n\n<![endif]--> <!--[if IE 9]>\n\n<![endif]--> <!--[if IE]>\n\n<![endif]--> <!--[if !IE]> -->  <!--<![endif]--><\/p>\n<p>   <!-- SiteCatalyst code version: H.20.3.\n    Copyright 1997-2009 Omniture, Inc. More info available at\n    http:\/\/www.omniture.com -->  <\/p>\n<p>         <!-- End SiteCatalyst code version: H.20.3. -->  <!--[if IE]>\n\n<![endif]--> <!--[if !IE]> -->   <!--<![endif]--><!--[if IE]>\n  \n  <noscript><link rel=\"stylesheet\" href=\"https:\/\/scripts.dailymail.co.uk\/static\/gunther\/gunther-2159\/video_bundle--.css\"><\/noscript>\n  \n<![endif]--> <!--[if !IE]> --> <link rel=\"preload\" href=\"https:\/\/scripts.dailymail.co.uk\/static\/videoplayer\/7.2.0\/styles\/mol-fe-videoplayer.min.css\" as=\"style\" onload=\"this.rel=\" stylesheet=\"\" \/> <noscript><link rel=\"stylesheet\" href=\"https:\/\/scripts.dailymail.co.uk\/static\/videoplayer\/7.2.0\/styles\/mol-fe-videoplayer.min.css\" \/><\/noscript>  <!-- <![endif]-->   <!-- CWV --><\/p>\n<div itemprop=\"articleBody\" wp_automatic_readability=\"86.326086956522\">\n<p class=\"mol-para-with-font\">Many consumers taking out fixed rate energy tariffs are finding that the deals are not saving them any money &#8211; and can have exit fees of up to \u00a3300 to move away.<\/p>\n<p class=\"mol-para-with-font\">Most households in the UK are on variable-rate energy deals limited by the<a style=\"font-weight: bold;\" target=\"_self\" class=\"class\" href=\"https:\/\/www.dailymail.co.uk\/money\/bills\/article-12444643\/What-energy-price-cap-cut-affect-bills.html\" rel=\"noopener\"> price cap set by regulator Ofgem<\/a>, with the average home paying around \u00a31,843 a year.\u00a0<\/p>\n<p class=\"mol-para-with-font\">With <a style=\"font-weight: bold;\" target=\"_self\" class=\"class\" href=\"https:\/\/www.dailymail.co.uk\/money\/bills\/article-12275321\/Energy-bills-stay-high-15-years-experts-predict.html\" rel=\"noopener\">energy bills predicted to stay high for years to come<\/a>, many households are eager to take out a fixed-rate energy deal &#8211; one that is cheaper than price-capped alternatives, as used to be the case before the energy crisis took hold.\u00a0<\/p>\n<p class=\"mol-para-with-font\">But a new report from the End Fuel Poverty Coalition found that out of the fixed-rate energy deals currently on the market for new and existing customers, only one &#8211; from Utility Warehouse &#8211; is cheaper than staying on a price-capped tariff.<\/p>\n<div class=\"artSplitter mol-img-group\" style=\"style\" wp_automatic_readability=\"8\">\n<div class=\"mol-img\">\n<div class=\"image-wrap\"> <img loading=\"lazy\" decoding=\"async\" id=\"i-17a3ecd7612ad3bf\" src=\"http:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2023\/10\/Does-YOUR-energy-deal-have-an-exit-fee-Some-new.jpg\" height=\"423\" width=\"634\" alt=\"Underpowered: Many fixed-rate energy deals actually work out more expensive than staying on rates limited by the Ofgem price cap\" class=\"blkBorder img-share\" style=\"max-width:100%\" \/> <\/div>\n<p> <noscript> <img loading=\"lazy\" decoding=\"async\" id=\"i-17a3ecd7612ad3bf\" src=\"http:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2023\/10\/Does-YOUR-energy-deal-have-an-exit-fee-Some-new.jpg\" height=\"423\" width=\"634\" alt=\"Underpowered: Many fixed-rate energy deals actually work out more expensive than staying on rates limited by the Ofgem price cap\" class=\"blkBorder img-share\" \/> <\/noscript> <\/div>\n<p class=\"imageCaption\">Underpowered: Many fixed-rate energy deals actually work out more expensive than staying on rates limited by the Ofgem price cap<\/p>\n<\/div>\n<p class=\"mol-para-with-font\">Meanwhile, there are 337 fixed rate deals already taken out by consumers that are charging them higher unit rates than the price cap.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Many of these deals also have high exit fees that can can be as expensive as \u00a3300 per household, adding extra hurdles to switching away from uncompetitive tariffs.<\/p>\n<p class=\"mol-para-with-font\">Exit fees are the charge consumers pay for leaving a contract early. The highest exit fee, of \u00a3300, is from Outfox the Market.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Three energy firms &#8211; So Energy, Utility Warehouse and Ecotricity &#8211; have early exit fees on all of their fixed-rate deals.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Just one in twenty (6 per cent) of British Gas tariffs come with no exit fees &#8211; and the firm\u2019s average exit fee is \u00a362.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Just 12 per cent of Eon&#8217;s tariffs have no exit fees, with the figure being\u00a04 per cent for EDF and 15 per cent for Ovo.<\/p>\n<p class=\"mol-para-with-font\">Some energy firms charge no exit fees at all, with almost all tariffs for Good Energy, Octopus and Cooperative Energy having no such charges.<\/p>\n<p class=\"mol-para-with-font\">Simon Francis, co-ordinator of the End Fuel Poverty Coalition charity group, said: &#8216;With energy prices subject to change, customers should exercise extreme caution when thinking about switching and fixing and we would call on companies to waive exit fees so people can switch easily to the cheapest tariff available.&#8217;<\/p>\n<p class=\"mol-para-with-font\">A Utility Warehouse spokesperson said: &#8220;Our best-in-market Fixed Saver 7 tariff allows customers to fix their energy at \u00a359 below the current price cap until November 2024.\u00a0<\/p>\n<p class=\"mol-para-with-font\">&#8216;Our fixed tariffs come with an exit fee should the customer choose to leave before the end of the fixed term.&#8217;<\/p>\n<div class=\"art-ins mol-factbox floatRHS money\" data-version=\"2\" id=\"mol-00cc01d0-645d-11ee-b1fe-711e7bbf9317\" data-permabox-url=\"https:\/\/www.thisismoney.co.uk\/money\/bills\/article-12602809\/Does-energy-deal-exit-fee-new-fixed-tariffs-come-penalties-300.html\">\n<h3 class=\"mol-factbox-title\">Why have I seen two figures for the Ofgem price cap?\u00a0<\/h3>\n<div class=\"ins cleared mol-factbox-body\">\n<ul class=\"mol-bullets-with-font\">\n<li>There are two figures for average energy use for the October 1 price cap &#8211; \u00a31,923 and \u00a31,834<\/li>\n<li class=\"class\">The reason is that from 1 October Ofgem not only changed the price cap, but also what it terms &#8216;average&#8217; energy use<\/li>\n<li>This is because consumers have been using less energy than the regulator thought\u00a0<\/li>\n<li>Using the old assumptions, the price cap fell from \u00a32,074 a year to \u00a31,923 on October 1<\/li>\n<li class=\"class\">The \u00a31,834 figure is far lower than \u00a31,923, but as the figures are based on average usage, it does not necessarily mean consumers are being charged that much less than they were. If they use more than the average amount, they will still pay more.<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<h2 class=\"mol-para-with-font mol-style-subhead\">How can I tell if a fixed rate deal is a good one?<\/h2>\n<p class=\"mol-para-with-font\">To work out if an energy deal is cheaper than you are paying now, compare the unit rate and standing charge with what you currently pay. These rates should be included on your bills.\u00a0<\/p>\n<p class=\"mol-para-with-font\">The average home is paying rates limited by the Ofgem price cap, which means 53p a day in electricity standing charges and 30p for gas, while electricity unit rates are 27p per kilowatt-hour (kWh) and 7p\/kWh for gas.<\/p>\n<p class=\"mol-para-with-font\">The massive variable is what happens with the Ofgem price cap in the future. It might be possible to lock into a cheaper deal now, only to see the price cap fall significantly, leaving you overpaying.<\/p>\n<p class=\"mol-para-with-font\">It is also worth looking at any exit fees in case you need to leave a deal early.\u00a0<\/p>\n<h2 class=\"mol-para-with-font mol-style-subhead\">What is the future for energy bills?<\/h2>\n<p class=\"mol-para-with-font\">Ofgem does not make predictions about how the price cap will change in the future, although chief executive Jonathan Brearley has previously warned customers that he &#8216;can&#8217;t offer any certainty that things will ease this winter&#8217;.<\/p>\n<p class=\"mol-para-with-font\">However, analysts at Cornwall Insight makes energy bill price predictions that are normally very accurate.<\/p>\n<p class=\"mol-para-with-font\">Cornwall Insight thinks the typical household will pay \u00a32,032 from January 1, falling to \u00a31,964 in April, \u00a31,917 in July and then rising again to \u00a31,974 next October.<\/p>\n<\/div>\n<p>            <!-- ad: https:\/\/mads.dailymail.co.uk\/v8\/dk\/money\/moneybills\/article\/other\/inread_player.html --><\/p>\n<div class=\"column-content cleared\">\n<div class=\"shareArticles\">\n<h3 class=\"social-links-title\">Share or comment on this article:<br \/>\n                        <\/h3>\n<\/p><\/div>\n<\/p><\/div>\n<p class=\"mol-style-italic byline-section justify\">Some links in this article may be affiliate links. 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Some new fixed tariffs come with penalties of up to \u00a3300 Fees to leave fixed rate energy tariffs can reach hundreds of pounds But many of these deals are uncompetitive, leaving consumers stranded\u00a0 By Sam Barker Updated: 06:00 BST, 7 October 2023 Many consumers taking out fixed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1283214,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_oct_exclude_from_cache":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-1283213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Does YOUR energy deal have an exit fee? 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